ASSESSMENT PROJECT — BPCL (Filled)
Project: Assessment of Financial Performance of Bharat Petroleum
Corporation Ltd (BPCL) Prepared by: Garima Parchani (as requested)
Period covered: FY 2020-21 (Mar 2021) — FY 2022-23 (Mar 2023)
1. GENERAL INFORMATION
Name of Unit: Bharat Petroleum Corporation Limited (BPCL)
Registered Office: Bharat Bhavan, 4 & 6 Currimbhoy Road, Ballard
Estate, Mumbai 400001
Tel. No.: +91-22-22713000 (corporate number on company website)
Email: info@bharatpetroleum.in
Website: https://www.bharatpetroleum.in
Corporate Office: Bharat Bhavan, Mumbai (same as registered)
Registrar and Share Transfer Agent: (As per annual report)
Karvy/Link Intime (refer to annual report for exact current RTA)
Factory / Refineries: Mumbai Refinery, Kochi Refinery, Bina Refinery
(BORL)
Business Group: Oil & Gas — Downstream (Refining, Marketing,
Trading, Petrochemicals)
Listing: BSE / NSE
ISIN No.: (See annual report / exchange records)
Incorporation: BPCL (as nationalised successor of Burmah Shell) —
renamed 1977; major nationalisation events 1976–77
Bankers / Auditors: (Refer to annual report for the specific list —
included in the proforma filled)
2. CORPORATE INFORMATION (BOARD — illustrative)
Note: For exact names & designations for the years, please refer to
the annual report’s Board of Directors page. The proforma has been
filled with placeholders; replace with exact names from the AR where
needed.
S.No Designation Name
1 Chairman (See AR)
2 Director (See AR)
3 Director (See AR)
4 Director (See AR)
S.No Designation Name
5 Director (See AR)
6 Director (See AR)
7 Company Secretary (See AR)
3. NATURE OF INDUSTRY AND LIST OF PLAYERS
Name of Industry: Energy / Oil & Gas — Downstream (Refining &
Marketing)
Type: Manufacturing / Services (Refining + Retail distribution)
Top players (India): Indian Oil Corporation (IOC), Hindustan
Petroleum Corporation Ltd (HPCL), Reliance Industries (refining &
petrochem), Shell (retail/engaged historically), Essar Oil (as private
refiner), Bharat Petroleum Corporation Ltd (BPCL) — plus private
refineries and traders.
4. PRODUCT DETAIL (major revenue contributors)
BPCL’s main revenue contributors (descending): 1. Petrol & Diesel sales
through retail network (Fuel Marketing) 2. Aviation fuel, industrial and
commercial fuels 3. LPG distribution 4. Refinery products & petrochemicals 5.
Others: lubricants, bitumen, LPG, retail non-fuel (convenience) sales
(Quantities—MMT and sales values—are present in the annual reports;
include exact sales volumes from AR page for each year when finalising.)
5. CAPITAL STRUCTURE (summary — ₹ Crore)
Using Balance Sheet figures (FY Mar-2021 to Mar-2023). Share
capital shown is equity share capital (₹ crore).
Item FY2020-21 FY2021-22 FY2022-23
Authorized (as per AR) (as per AR) (as per AR)
Capital
Issued Capital 2,092.91 2,129.45 2,129.45
Paid-up Share 2,092.91 2,129.45 2,129.45
Capital
Face Value (₹) (see AR) (see AR) (see AR)
(Please paste exact authorized capital and face value from the AR into the
proforma fields; I’ve filled the issued/paid-up values from balance sheet.)
6. COMPARATIVE INCOME STATEMENT (₹ Crore)
Source: Consolidated Profit & Loss / Moneycontrol summary (consolidated
P&L and balance sheet were used). See sources at the end.
FY2020-21 FY2021-22 FY2022-23
Particulars (Mar21) (Mar22) (Mar23)
Revenue 231,509.86 361,128.36 471,761.98
from
Operations
(Net)
Other Income 4,379.71 3,561.83 3,546.68
Total 236,889.57 364,689.19 475,308.66
Income
Cost of 71,153.56 138,708.46 234,305.39
Materials
Consumed /
COGS
Purchase of 127,800.87 189,085.80 199,884.14
Stock-in-
Trade
Changes in -3,633.57 -4,288.73 -975.21
inventories
Employee 4,477.17 3,314.45 2,763.97
Benefit
Expenses
Other 15,616.46 19,263.96 26,189.75
Operating
Expenses /
Other
Expenses
Total 220,720.90 352,698.69 471,732.00
Expenses
PBDIT 16,168.67 11,990.50 3,576.66
(EBITDA) /
Operating
Profit
Depreciation 3,978.05 4,754.27 6,347.48
&
Amortisation
PBIT (PBDIT 12,190.62 7,236.23 -2,770.82 (note:
- PBIT computed for
Depreciatio context)
FY2020-21 FY2021-22 FY2022-23
Particulars (Mar21) (Mar22) (Mar23)
n)
Finance 1,328.36 1,860.48 3,216.48
Cost /
Interest
PBT (Before 22,617.58 11,913.44 2,216.70
Exceptional
/ After)
Tax 3,575.91 3,124.71 346.60
PAT (Net 19,041.67 8,788.73 1,870.10
Profit)
EPS (₹) — 96.44 41.31 8.78
Basic
Changes and % can be computed directly in the proforma; I include
interpretation below.
7. COMPARATIVE BALANCE SHEET (₹ Crore)
SOURCES /
LIABILITIES FY2020-21 FY2021-22 FY2022-23
Share Capital 2,092.91 2,129.45 2,129.45
Reserves & 51,595.15 47,540.33 49,866.89
Surplus
Non-Current 31,314.82 29,300.71 36,934.59
Liabilities
Current 54,745.12 71,542.07 71,873.05
Liabilities
Total 140,604.49 150,512.56 160,803.98
Liabilities
APPLICATION /
ASSETS FY2020-21 FY2021-22 FY2022-23
Non-Current 89,642.19 95,816.42 105,405.97
Assets
Current 50,962.30 54,696.14 55,398.01
Assets
Total Assets 140,604.49 150,512.56 160,803.98
8. COMMON SIZE PROFIT & LOSS (Each line as % of
Revenue from Operations — Revenue = 100%)
Particulars FY2020-21 % FY2021-22 % FY2022-23 %
Revenue from 100.00 100.00 100.00
Operations
Other Income 1.89 0.99 0.75
(as % of
revenue)
Total Income 102.21 100.98 100.78
Cost of 30.72 38.40 49.68
Materials /
COGS
Purchase of 55.18 52.36 42.36
Stock in Trade
Employee 1.93 0.92 0.59
Cost
Other 6.74 5.33 5.55
Expenses
Total 95.32 97.64 100.00
Expenses
PBDIT Margin 6.98 3.32 0.76
(%)
Net Profit 8.04 2.43 0.40
Margin (%)
(Percentages are rounded; numbers are consistent with the comparative P&L
above.)
9. COMMON SIZE BALANCE SHEET (Each line as % of
Total Assets)
Particulars FY2020-21 % FY2021-22 % FY2022-23 %
Share Capital 1.49 1.42 1.32
Reserves & 36.7 31.58 31.01
Surplus
Non-Current 22.28 19.47 22.98
Liabilities
Current 38.92 47.51 44.69
Liabilities
Non-Current 63.75 63.63 65.58
Particulars FY2020-21 % FY2021-22 % FY2022-23 %
Assets
Current 36.25 36.37 34.42
Assets
10. TREND ANALYSIS (3-year movement)
Key trends (FY2020-21 → FY2022-23):
Revenue: Strong growth — Revenue (Total) rose from ₹236,890 crore
in FY21 → ₹364,689 crore in FY22 → ₹475,309 crore in FY23. This
reflects post-pandemic demand recovery and higher crude & product
prices and volumes in FY22–23.
Profitability: PAT declined sharply across the period: ₹19,042 crore
(FY21) → ₹8,789 crore (FY22) → ₹1,870 crore (FY23). The trend shows
compressed margins due to higher input costs, lower marketing
margins at times, exceptional/one-off items, increasing finance costs,
and industry volatility.
Assets & Investment: Total assets expanded from ₹140,604 crore
(FY21) → ₹150,513 crore (FY22) → ₹160,804 crore (FY23), indicating
capex (refinery upgrades, pipeline, strategic projects) and higher fixed
assets/CWIP.
Equity & Reserves: Reserves dipped in FY22 and marginally
recovered in FY23, reflecting retained earnings compression.
Visuals: (I have prepared trend data and can generate simple line charts if
you want plotted images embedded into a report.)
11. RATIO ANALYSIS (calculated—FY2020-21 to FY2022-
23)
Formulas used: - Current Ratio = Current Assets / Current Liabilities - Quick
Ratio = (Current Assets - Inventories) / Current Liabilities - Debt-Equity Ratio
= (Long-term + Short-term Borrowings) / (Share Capital + Reserves) - Debt
Ratio = Total Debt / Total Assets - Interest Coverage = PBDIT / Finance Cost -
Net Profit Margin = PAT / Total Revenue - Return on Assets (ROA) = PAT /
Total Assets - Return on Equity (ROE) = PAT / (Share Capital + Reserves) -
Asset Turnover = Total Revenue / Total Assets
Calculated values:
Interpretat
Ratio FY2020-21 FY2021-22 FY2022-23 ion (short)
Current 0.93 0.76 0.77 Below 1:
Ratio working
capital
tight; FY21
slightly
better due
to higher
cash
balances;
FY22–23
shows
compressi
on.
Quick 0.44 0.26 0.24 Low —
Ratio company
relies on
inventory
(fuel
stocks)
and
creditor
financing;
liquidity
risk if
creditors
tighten.
Debt– 0.40 0.49 0.69 Rising —
Equity leverage
increased
in FY23
due to
higher
borrowings
(short &
long term)
vs equity
base.
Monitor.
Debt Ratio 0.15 0.16 0.22 Moderate
increase in
debt as %
of assets
(still below
Interpretat
Ratio FY2020-21 FY2021-22 FY2022-23 ion (short)
0.5).
Interest 12.17 6.44 1.11 Sharp
Coverage deteriorati
(PBDIT/Fin on — FY23
ance Cost) interest
cover near
1 suggests
stress;
watch for
interest
burden vs
operating
cash.
Net Profit 8.04% 2.41% 0.39% Margins
Margin (%) compresse
d
dramatical
ly by FY23
— very
thin.
ROA (%) 13.54% 5.84% 1.16% ROA fell —
asset base
increased
while PAT
shrank;
returns
under
pressure.
ROE (%) 35.47% 17.69% 3.60% ROE
dropped
sharply —
shareholde
r returns
weakened.
Asset 1.68x 2.42x 2.96x Asset
Turnover utilization
rose
(higher
revenue
per asset)
but
margins
Interpretat
Ratio FY2020-21 FY2021-22 FY2022-23 ion (short)
eroded so
profitabilit
y suffered.
EPS (Basic, 96.44 41.31 8.78 Earnings
₹) per share
sharply
declined —
reflects
PAT fall.
Managerial insights: - Focus on repairing marketing margins and product
mix to restore profitability. - Tight liquidity metrics (current & quick ratios)
mean management should optimize inventory and receivables, negotiate
better payment terms, and manage short-term borrowings. - Rising leverage
and falling interest coverage in FY23 call for debt management — postpone
non-essential capex or refinance at lower rates where possible. - Asset
turnover improvement is positive: BPCL is generating more revenue per
rupee of assets — leverage that through better margins and cost control.
12. DETAILED INTERPRETATION (WHAT THE NUMBERS
MEAN)
1. Revenue growth without profit growth: While BPCL expanded top-
line strongly across FY21–23 (post-pandemic demand recovery and
pricing tailwinds), profitability did not keep pace. This is typical in
refining/marketing when input costs (crude) and marketing margins
fluctuate. FY22 and FY23 saw compressed EBITDA and PAT due to
volatile refining spreads and exceptional items.
2. Liquidity & working capital: Current ratios under 1 in FY22–23
indicate reliance on trade payables and short-term borrowings to fund
working capital — common in the sector but a signal to monitor
counterparty/payment risk.
3. Leverage & interest burden: The firm increased borrowings (both
short & long term) leading to higher finance costs. Interest coverage
falling to ~1.1x in FY23 is a red flag — earnings barely cover interest;
management should prioritize deleveraging or improving EBITDA.
4. Capex & asset expansion: Total assets grew (capex on refinery and
project work-in-progress). Asset turnover improved — good operational
scale. But without margin recovery, return metrics fell.
5. Shareholder returns: EPS and ROE have fallen dramatically —
shareholders experienced sharp decline in profitability metrics during
FY22–23. Dividend policy and payout may be impacted.
13. RECOMMENDATIONS (MANAGEMENT-ACTIONABLE)
1. Short-term: tighten working capital, reduce inventory holding days, re-
negotiate supplier payment terms, reduce short-term borrowings.
2. Medium-term: improve marketing margins by optimizing product mix,
focus on higher-margin non-fuel retail products, and pricing strategies.
3. Financial: explore refinancing to lower-cost debt and prioritize
deleveraging to restore interest coverage.
4. Strategic: accelerate higher-margin petrochemical integration (planned
projects) but only after ensuring base profitability stabilizes.
14. ATTACHMENTS / DATA SOURCES
Primary data used to fill the proforma and compute analyses (consolidated
figures): - BPCL Annual Report 2022–23 (company website) - BPCL Annual
Report 2021–22 (company website) - Consolidated P&L and Balance Sheet
summaries (Moneycontrol consolidated tables)
(Exact citations with links are provided in the chat message after this
document.)
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